LOCAL AGENCY FORMATION COMMISSION OF NAPA ......projected operating fund balance at the end of the 2008-2009 fiscal year is $4.3 million. American Canyon operates two municipal enterprises

LOCAL AGENCY FORMATION COMMISSION OF NAPA COUNTY

CITY OF AMERICAN CANYON: SPHERE OF INFLUENCE REVIEW AND UPDATE Draft Report April 2010

Prepared by: LAFCO of Napa County 1700 Second Street, Suite 268 Napa, California 94559 http://napa.lafco.ca.gov

Committed to serving the citizens and government agencies of its jurisdiction by encouraging the preservation of agricultural lands and open-space and coordinating the efficient delivery of municipal services.

Juliana Inman, Chair, City Member Bill Dodd, Vice-Chair, County Member Lewis Chilton, Commissioner, City Member Brian J. Kelly, Commissioner, Public Member Brad Wagenknecht, Commissioner, County Member Joan Bennett, Alternate Commissioner, City Member Mark Luce, Alternate Commissioner, County Member Gregory Rodeno, Alternate Commissioner, Public Member

Keene Simonds, Executive Officer Jacqueline Gong, Commission Counsel Brendon Freeman, Analyst Kathy Mabry, Commission Secretary

http://napa.lafco.ca.gov/

City of American Canyon: Sphere of Influence Review and Update LAFCO of Napa County

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TABLE OF CONTENTS Section PageI. Introduction………………………………………………………… 4

A. Local Agency Formation Commissions……………………..... 4 B. Spheres of Influence……...…………………………………..... 4 C. City of American Canyon ……………………………………... 5

II. Agency Overview………………….………………………………… 8 A. Background…………………………………………………….. 8 B. Sphere of Influence…………………………………………..... 9 Establishment……………………………………………………. 9 Amendments/Updates…………………………………………… 9 Current Composition…………………………………………….. 9 C. Land Use Policies……………………………………………… 11 American Canyon……………………………………………….. 11 County…………………………………………………………... 13

III. Discussion…………………..…………………………………........ 14 A. Objectives ………………………………………....................... 14 B. External Considerations……………………………................. 14 C. Timeframe……………………………………………………… 15

IV. Study Areas…………………………………………………………. 15 A. Criteria and Selection …………………………………………. 15

V. Analysis………………………………………………………………. 16 A. Evaluation Factors……………………………………………... 16 B. Study Areas…………………………………………………….. 17 Study Area A (Atkins, Headwaters, Panattoni)…………………… 17 Study Area B (Clark West-Ranch)……………………………….. 20 Study Area C (Abandoned Sewer Ponds)………………………… 23 Study Area D (Middle School Site)………………………………. 26 Study Area E (South Watson Lane/Town Center)………………. 29 Study Area F (Auto-Salvage Yard)……………………………...... 33

VI. Recommendation…………………………………………….......... 36

VII. Attachments………………………………………………..................................... 1. Municipal Service Review: Executive Summary…………………………….. 2. Commission’s Adopted Policy Determinations……………………………... 3. American Canyon and County of Napa Agreement…………………………. 4. American Canyon’s Commission-Defined Extraterritorial Service Areas...... 5. Memorandum on Environmental Review…………………………………….

FIGURES 1: Map of American Canyon’s Sphere……………………………. 10 2: Map of American Canyon’s Sphere: Unincorporated Lands… 11 3: Map of American Canyon’s General Plan Designations……... 12 4: Map of County of Napa’s General Plan Designations……….. 13 5: Map of Study Areas…………………………………………….. 16

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* Contact staff for a copy of American Canyon's Commission-defined extraterritorial service areas

ksimonds

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I. INTRODUCTION A. Local Agency Formation Commissions Local Agency Formation Commissions (LAFCOs) are political subdivisions of the State of California and are responsible for administering a section of Government Code now known as the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (“CKH”). LAFCOs are located in all 58 counties and are delegated regulatory responsibilities to coordinate the logical formation and development of local governmental agencies and services. Specific regulatory duties include approving or disapproving proposals involving (a) city incorporations or disincorporations, (b) special district formations, consolidations, and dissolutions, and (c) city and special district annexations and detachments. LAFCOs inform their regulatory duties through a series of planning activities, namely preparing municipal service reviews and sphere of influence updates. Underlying LAFCOs regulatory and planning responsibilities is fulfilling certain objectives outlined by the California Legislature under Government Code (G.C.) Section 56301, which states:

“Among the purposes of the commission are discouraging urban sprawl, preserving open-space and prime agricultural lands, efficiently providing governmental services, and encouraging the orderly formation and development of local agencies based upon local conditions and circumstances.”

LAFCOs are generally governed by a five-member commission comprising two county supervisors, two city councilmembers, and one representative of the general public.1 Members must exercise their independent judgment on behalf of the interests of residents, landowners, and the public as a whole. LAFCOs have sole authority in administering its legislative responsibilities and its decisions are not subject to an outside appeal process. B. Sphere of Influence

“Sphere” means a plan for the probable physical boundary and service area of a local agency, as determined by LAFCO.

A central planning responsibility for LAFCO is the determination of a sphere of influence (“sphere”) for each city and special district under its jurisdiction.2 LAFCO establishes, amends, and updates spheres to designate the territory it believes represents the appropriate and probable future service area and jurisdictional boundary of the affected agency. All jurisdictional changes, such as annexations and detachments, as well as outside service extensions must be consistent with the spheres of the affected local agencies with

3 limited

xceptions.

e There are several important and distinct policy considerations underlying sphere determinations. For example, inclusion within a multiple-purpose agency’s sphere, such as a city or community services district, generally indicates an expectation by LAFCO the territory should be developed for urban uses. Alternatively, inclusion of territory within a limited-purpose agency’s sphere, such as a hospital or mosquito abatement district, may be

1 Several LAFCOs also have two members from independent special districts within their county. Each category

represented on LAFCO has one alternate member. 2 LAFCOs have been required to determine spheres for cities and special districts within its jurisdiction since 1972. 3 A prominent exception involves land owned and used by cities for municipal purposes that are non-contiguous to their

incorporated boundary (G.C. Section 56742).

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intended to support both urban and non-urban uses. It is also important to note inclusion within a sphere does not provide any guarantees the territory will be annexed. Jurisdictional changes must be considered on their own merits with particular attention focused on ssessing whether the timing of the proposed action is appropriate.

s. AFCO must review and update each local agency’s sphere every five years as necessary.

with e anticipated needs of the affected community. The four factors are outlined below.

d adequacy of public services that the agency

est in the area if the commission determines that they are relevant to the agency.

plete the municipal service review rocess prior to making related sphere determinations.

. City of American Canyon

a Sphere determinations may also lead LAFCO to take other actions under its authority. This may include initiating the formation, consolidation, or dissolution of local agencies. Further, an increasingly important role involving sphere determinations relates to their use by regional councils of governments as planning areas in allocating housing need assignments for counties and cities, which must be addressed by the agencies in their housing elementL In making a sphere determination, LAFCO are required to prepare written statements addressing four specific planning factors listed under G.C. Section 56425. These factors range from evaluating current and future land uses to the existence of pertinent communities of interest. The intent in preparing the written statements is to focus LAFCOs in addressing the core principles underlying the sensible development of each local agency consistentth

1. Present and planned land uses in the area, including agricultural and open-space.

2. Present and probable need for public facilities and services in the area.

3. Present capacity of public facilities anprovides or is authorized to provide.

4. Existence of any social or economic communities of inter

LAFCOs inform their sphere determinations by preparing municipal service reviews to evaluate the level and range of governmental services provided in the region. Municipal service reviews vary in scope and can focus on a particular agency, service, or geographic area. Municipal service reviews culminate with LAFCO making determinations on a number of governance-related factors. This includes infrastructure needs or deficiencies, growth and population projections, and financial standing. LAFCOs may also consider additional factors if required by local policy. LAFCOs must comp C This report represents LAFCO of Napa County’s (“Commission”) scheduled sphere review of the City of American Canyon. The report supersedes the last comprehensive sphere review of American Canyon adopted by the Commission in February 2004. This report draws on information collected and analyzed in the Commission’s recently completed municipal service review on the southeast county region, which included evaluating the availability, adequacy, and capacity of services provided by American Canyon. Other governmental agencies evaluated in the southeast county municipal service review were the American Canyon Fire Protection District (ACFPD) and County Service Area (CSA) No. 3, whose spheres will be updated in the near future as part of separate reports. The municipal

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service review’s executive summary is attached and includes the written determinations adopted by the Commission at its June 1, 2009 meeting. The focus of this report is to consider whether changes to American Canyon’s sphere are warranted in terms of consistency with the provisions of CKH and the adopted policies of the Commission. In identifying study areas for review, the report incorporates a request made by American Canyon to expand the City’s sphere to correspond with its recently revised urban limit line. The report also considers an agreement between American Canyon and the County to expand the City’s sphere to include certain lands located near the Napa County Airport referred to as Study Area “A.” The agreement has been submitted to

AFCO in accordance with G.C. Section 56425(b). This statute directs LAFCO to “give reat weight” to the agreement to the extent it is consistent with its policies.

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II. AGENCY OVERVIEW A. Background American Canyon was incorporated in 1992 and operates under a council-manager system of government. American Canyon is approximately 4.9 square miles in size and provides a full range of municipal services directly or through contracts with outside contractors with limited exceptions. American Canyon is the second largest municipality in Napa County and has been one of the fastest growing communities in the entire San Francisco Bay Area with an average annual population increase of 7.2% over the last 10 years. The California Department of Finance estimates American Canyon’s population at 16,293. This amount represents an approximate two-third increase in population since 1998. American Canyon’s current operating budget is $16.5 million. American Canyon’s primary revenue source is drawn from property taxes, which currently funds nearly half of the City’s operating budget. Markedly, on a regional level, American Canyon collects more in property taxes than any other city in Napa County as measured on a per capita basis.4 American Canyon’s remaining discretionary revenues are principally generated from sales tax and motor vehicle license fees, with the former having increased by over one-third over the last five years as result of new commercial development in the City. This includes the recent construction of the first two phases of Napa Junction, which represents American Canyon’s largest commercial site and anchored by a Wal-Mart Superstore.5 The single largest operating expense for American Canyon involves police protection services and presently represents close to one-quarter of all discretionary expenditures. American Canyon’s projected operating fund balance at the end of the 2008-2009 fiscal year is $4.3 million. American Canyon operates two municipal enterprises involving sewer and water services. Both systems extend beyond American Canyon’s incorporated boundary and were inherited by the City at the time of its formation as successor agency to the American Canyon County Water District (ACCWD). In 2001, G.C. Section 56133 became effective to mandate local agencies receive LAFCO approval before providing new or extended services beyond their jurisdictions by contract or agreement with local landowners. The statute limits LAFCO approval for new or extended services beyond the agency’s jurisdiction but within their spheres in anticipation of future annexations. Approval for new or extended services beyond an agency’s jurisdiction and sphere is limited to addressing existing or impending public health or safety threats. In response, the Commission reconciled the requirements of the statute with American Canyon’s inherited responsibilities by establishing extraterritorial sewer and water service areas for the City. The sewer and water extraterritorial service areas extend north of American Canyon to include unincorporated lands designated for an urban use by the County of Napa to Fagan Creek and Soscol Ridge, respectively.6

4 Based on actual 2007-2008 totals, American Canyon received $424 in property tax revenues, which surpassed St. Helena

at $382, Calistoga at $285, Napa at $263, and Yountville at $135. 5 A third phase of Napa Junction is expected to add an additional 130,000 feet in commercial space. 6 American Canyon must receive Commission approval before providing new or extended services within the

extraterritorial service areas with the exception of land subject to the County’s Airport Industrial Area Specific Plan.

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B. Sphere of Influence

Establishment

American Canyon’s sphere was established by the Commission in 1991 in conjunction with approving the City’s incorporation. The Commission designated the sphere to closely match American Canyon’s approved incorporated boundary with the notable addition of approximately 410 unincorporated acres located along the City’s eastern border.7 This unincorporated area was added to the sphere given its urban land use designation under the County General Plan, which was based on following the perceived 15% slope line of the adjacent Sulpher Mountain range. Two incorporated areas not included in the sphere involved American Canyon’s water treatment plant located off of Kirkland Ranch Road and its wastewater storage ponds situated at the western terminus of American Canyon Road. Amendments/Updates The Commission has approved three changes to American Canyon’s sphere since its establishment in 1991. The first two changes to the sphere involved amendment requests made by individual landowners. The first amendment was approved in 1998 and added 25 acres located southeast of American Canyon Road’s intersection with Flosden Road. This area was added as part of a concurrent annexation proposal and represents the far eastern portion of the present-day La Vigne subdivision. The second amendment was approved in 1999 and added 70 acres located east of State Highway 29’s intersection with Pico Boulevard. This area was added to facilitate a future annexation of a town center project and is commonly referred to as the “horseshoe” property. The area remains unincorporated and undeveloped. The third change to the sphere was approved by the Commission in 2004 as part of a scheduled comprehensive update. The update included adding four distinct areas to the sphere totaling 640 acres. The largest addition involved over 370 acres located along the northern side of Green Island Road, which was later annexed into American Canyon in 2005, although it remains undeveloped or underdeveloped. The other additions to the sphere involved areas located off of Watson Lane, Eucalyptus Drive, and American Canyon Road and generally remain unincorporated.8 Current Composition American Canyon’s sphere is currently 3,333 acres or 5.1 square miles in size. The sphere is coterminous with nearly 90% of American Canyon’s incorporated boundary and includes a total of 5,214 assessor parcels. Of this amount, 18 assessor parcels are unincorporated and concentrated within four distinct areas. Three of these four unincorporated areas were added to the sphere in 2004 as part of the last comprehensive review. The fourth area, which consists of three assessor parcels located east of the intersection of State Highway 29 and Poco Boulevard, was added in 1999 and is part of a planned town center project.

7 American Canyon’s incorporated boundary was established by the Commission to generally follow ACCWD’s jurisdictional

boundary with the exception of lands designated for non-urban use by the County. 8 A portion of the area along Eucalyptus Drive was annexed into American Canyon in 2005 as part of the City’s

construction of a new wastewater treatment plant.

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Figure One

Table OneUnincorporated Areas Within American Canyon’s Sphere (Source: LAFCO)

Location Description Acres Current Land Use State Highway 29/Watson Lane 76.7 Rural ResidentialAmerican Canyon Road/Newell Drive 49.5 Under Construction: School SiteEucalyptus Drive/Wetlands Edge Drive 106.6 UndevelopedState Highway 29/Poco Way 70.0 Undeveloped

Table Two

Incorporated Areas Outside American Canyon’s Sphere (Source: LAFCO)

Location Description Acres Current Land Use Kirkland Ranch Road/Jameson Canyon 14.4 Water Treatment FacilityAmerican Canyon Road/Wetlands Edge Drive 62.7 Undeveloped

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Figure Two

C. Land Use Policies American Canyon The American Canyon General Plan was adopted in 1994 and codifies land use objectives and policies for the City through 2010. The General Plan includes a vision statement for American Canyon to evolve into a “compact urban community surrounded by a well-defined network of farmlands, hillsides, and riverine habitats.” The General Plan outlines four broad development goals: (a) serve as a bedroom community for the greater region; (b) create a sufficient commercial base for residents; (c) become a subregion employment center; and (d) emerge as a destination for visitors to the Napa Valley.

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The American Canyon General Plan includes an urban limit line (ULL) that was recently amended as part of a negotiated agreement with the County and implemented through a citizens initiative.9 The ULL directs American Canyon’s future growth through 2030 to extend north to the southern perimeter of the Napa County Airport and east towards the foothills of the Sulpher Mountain range. All lands within the ULL are assigned land use designations. These designations orient American Canyon’s development to emphasize predominately residential uses in the southwest and southeast while commercial and industrial uses are generally planned in the central and northwest.

Figure Three 9 The agreement between American Canyon and the County was entered into on June 3, 2008. The agreement stipulates

the County will support the expansion of American Canyon’s sphere and subsequent annexation of lands lying north of the City and within its ULL identified in this report as Study Area “A.” In exchange, American Canyon pledges it will provide water service to outside customers within the County’s Airport Industrial Area Specific Plan. American Canyon further agrees not to file an additional sphere amendment request with the Commission through 2030 other than the City’s standing application on file to expand the sphere to match its revised ULL.

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County The County General Plan was last updated in 2008 and designates nearly all adjacent unincorporated lands east and west of American Canyon as Agriculture, Watershed and Open Space. This designation supports the preservation of existing agricultural and open-space land uses characterizing most of the area by requiring minimum lot densities of 160 acres. Contemplated uses under this designation include agriculture, processing of agricultural products, and single-family residences with or without a detached second unit.10 Adjacent unincorporated land north of American Canyon is designated under the County General Plan as Industrial. This designation specifies minimum lot densities between 0.5 to 40 acres based on proximity to utilities and is intended to support various industrial uses, including warehouses, manufacturing facilities, and wineries.11

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10 The County zones these lands as Agricultural Watershed. Specific uses allowed without a permit include agriculture,

wineries, family daycare, residential care, and one single-family residence per legal lot with or without a second unit. 11 Maximum building density coverage is 50%. The County zones the majority of these lands as General Industrial. Specific

uses allowed without permit include agriculture, bakeries, creameries, storage yards, assembly and packing facilities, and electrical, plumbing, heating, welding, and sheet metal shops.

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0 1 2 3 40.5Miles

County of NapaHorizontal Datum: NAD 83,CA State P lane Coordinates,Zone II, feet

Disclaimer: This map was prepared for informational purposes only. No liability is assumed for the accuracy of the data delineated hereon.

Revised D ate: 05 /05/2009

Napa County Land Use Plan2008 - 2030

Office of ConservationDevelopment and Planning

The Land Use Element of TheNapa County General PlanIncluding the Map was amended by the Napa County

Board of Supervisors by Resolution No.

Brad WagenknechtBoard of Supervisors - Disitr ict 1

Gladys CoilClerk of the Board

Picture of the Goalsand Policies Contained in the Land Use Element ReportUsing eight Broad Land Use Classifications and Eight Symbols.The Map Presents a Graphic Overview of the General Distributionand Location of Major Land Use Areas and Facilities

Land Use MapThe Land Use Map Provedes a Generalized

Figure Four

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Berryessa EstatesPope ValleyPope CreekAngwinDeer ParkSouth St. HelenaSpanish FlatBerryessa HighlandsRutherfordOakvilleMoskowite CornerBig Ranch RoadSilveradoCoombsvilleSouth County Industrial AreasCalistoga VicinityPartrick Road

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Mark LuceChair, Board of Supervisors - Disitrict 2

Diane DillonVice Chair , Board of Supervisors - Disitrict 3

Bill DoddBoard of Supervisors - Disitr ict 4

Keith CaldwellBoard of Supervisors - Disitr ict 5

09 - 54 May 5, 2009__________on_________________

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_____________________________ Attested by:

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Legend

General Plan 2008-2030

URBAN

Study Area

Cities

Urban Residential

Rural Residential

Industrial

Public-Institutional

OPEN SPACE

Agriculture, Watershed & Open Space

Agricultural Resource

TRANSPORTATION

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Mineral Resource

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American Canyon ULL

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III. DISCUSSION A. Objectives The basic objective of this report is to identify and evaluate areas warranting consideration for inclusion or removal from American Canyon’s sphere as part of a comprehensive review. Underlying this effort is to designate the sphere to facilitate the sensible and timely development of American Canyon consistent with the provisions of CKH. Specific goals under this legislation include discouraging urban sprawl, preserving open-space and prime agricultural lands, and providing for the efficient extension of governmental services. The Commission’s “Policy Determinations” were last amended in 2003 and provide prescription in fulfilling its legislative objectives. The Policy Determinations highlight the Commission’s commitment to avoid the premature conversion of designated agricultural or open-space lands to urban uses through a series of restrictive allowances. This includes a determination to exclude lands designated as agricultural or open-space from city spheres for the purpose of accommodating urban type development unless it is demonstrated that infill opportunities are limited or non-existent. An additional determination states the Commission will recognize the public’s support for Measure “J” by deferring to the County General Plan in determining agricultural and open-space land use designations.12 The Commission also directs any development or use of land for purposes other than open-space uses shall be guided away from existing prime agricultural lands. B. External Considerations Spheres have assumed an increasingly important role in informing statewide and regional planning activities that are external to LAFCOs, but parallel shared goals with respect to coordinating efficient and sustainable growth. The use of spheres, for example, by local council of governments (COGs) as the planning areas for purposes of preparing biannual population, jobs, and housing projections is significant. These projections are used by COGs in allocating housing need assignments among cities and counties within their regions as assigned by the Department of Housing and Community Development. Importantly, depending on the COGs allocation process, the placement of unincorporated land within a city sphere with potential job growth may result in an increased housing need assignment to the municipality as part of the next cycle.13 Conversely, the placement of unincorporated land within a city sphere with potential housing growth may result in a decreased housing need assignment to the municipality. Agreements among local agencies may also have an effect on the allocations. Regardless, central to the allocation process is the sphere.

12 Measure J was enacted by Napa County voters in 1990 and prohibits the amendment of agricultural or open-space land

use designations in unincorporated areas without electorate approval through 2020. This initiative was extended in 2008 through 2050 through Measure “P.”

13 COGs’ housing need allocation currently cycle every seven to eight years.

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A more recent external consideration associated with spheres relates to Senate Bill 375, which was enacted in January 2009. This legislation now requires regional transportation agencies to establish sustainable community strategies (SCS) as part of their regional transportation plans. The end-goal of a SCS is to connect smart growth land use principles with transportation funding in order to further reduce greenhouse gas emissions in the state. The law requires consideration of adopted spheres in the development of a SCS. C. Timeframe State law requires LAFCOs review and update each local agency’s sphere by January 1, 2008 and every five years thereafter as needed. Accordingly, it has been the practice of the Commission to update each local agency’s sphere in a manner emphasizing a probable five-year annexation area. This update’s analysis is consistent with this practiced timeframe. IV. STUDY AREAS A. Criteria and Selection This report incorporates a formal request made by American Canyon to expand the sphere to match its revised ULL. As described on page 12 of this report, the amended ULL was formulated as part of a negotiated agreement between American Canyon and the County and implemented through a citizens initiative adopted by the City Council in August 2008. The ULL is intended to guide American Canyon’s growth through 2030 and includes a total of 820 unincorporated acres lying outside the current sphere. The report categorizes these unincorporated ULL lands within five distinct study areas based on geographic similarities and are identified as “A,” “B,” “C,” “D,” and “E.” A sixth study area, “F,” has also been included for review by staff given the affected unincorporated lands are surrounded nearly four-fifths by American Canyon’s ULL. A potential seventh study area was also considered for conclusion in this review and update. This area comprises 155 unincorporated acres of mostly industrial land uses located along Green Island Road between American Canyon and the Napa River. Although it is outside the ULL, the area lies within American Canyon’s extraterritorial water and sewer service areas as determined by the Commission. All vehicular access to the area must also go through American Canyon byway of Green Island Road. These preliminary factors all suggest including the area into the sphere is merited. Previous outreach efforts made during the last update, though, identified a sizeable portion of the landowners in the area opposed inclusion into the sphere. It is reasonable to assume this opposition continues today given the perceived lack of landowner change in the area. With this opposition in mind, and given the five-year timeframe, consideration of expanding the sphere to include the area is not further considered as part of this review. Additionally, no study areas have been identified for review with respect to considering removal of any of the four existing unincorporated areas from the sphere. The rationale for not considering removals is prefaced on recognizing all four unincorporated areas are subject to current or impending annexation proposals.

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Figure Five

V. ANALYSIS A. Evaluation Factors

Evaluation of each study area is organized to address the four planning factors the Commission is required to consider anytime it makes a sphere determination. These planning factors are (a) present and planned land uses, (b) present and probable need for public facilities and services, (c) present adequacy and capacity of public services, and (d) existence of any social or economic communities of interest. Conclusions are offered for each study area with regard to whether a sphere modification is appropriate.

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B. Study Areas Study Area A

This study area comprises approximately 293 unincorporated acres located immediately north of American Canyon’s existing jurisdictional boundary and sphere and south of the Napa County Airport. The study area includes four entire assessor parcels and is bisected along its eastern side by an active railroad owned by Union Pacific. The affected assessor parcels are commonly referred to by their current or former landowner’s names, “Atkins,” “Headwaters,” and “Panattoni.” The study area was included in American Canyon’s original ULL and is considered for inclusion into the sphere at the request of the City.

Panattoni Headwaters Atkins

Assessor Parcels Landowner Acre Size 057-090-080 Napa Airport Corp. Centre 11.9 057-090-079 Napa Airport Corp. Centre 37.2 057-090-069 Napa Industrial, LLC 218.1 057-040-007 Larry Atkins 25.4

Present and Planned Land Uses The entire study area is presently undeveloped and consist of native grassland. There is no documentation or evidence indicating the study area has been developed or utilized in the past for any uses other than perhaps livestock grazing. The County designates the entire study area as Industrial. This designation contemplates a variety of urban non-residential uses ranging from manufacturing to office space.14 The designation is supported by the County’s zoning standard of Industrial Park for all four of the affected assessor parcels, which specifies a minimum lot requirement of 5.0 acres. Specific development and design standards for the study area are outlined in the County’s Airport

14 The minimum lot requirement under the County’s Industrial designation is 0.5 to 40 acres based on utility and road access.

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Industrial Area Specific Plan (AIASP).15 American Canyon also designates the entire study area as Industrial and has prezoned the affected assessor parcels as Napa County Airport Industrial Area. This prezoning standard has been made in conjunction with filing an annexation proposal with the Commission and fully incorporates the development and design standards codified in the County’s AIASP. The prezoning standard ensures future uses and densities within the study area would be identical under either jurisdiction. There are two vested projects tied to the study area. The first project involves the smaller of the two contiguous affected assessor parcels referred to as the Panattoni property. The project was approved by the County Planning Commission in April 2008 and allows for the construction of four detached light industrial buildings totaling 171,000 square feet.16 The second vested project involves subdividing the largest of the four affected assessor parcels referred to as the Headwaters property. This project was approved by the County Planning Commission in January 2009 and allows for the creation of a new 40 acre lot and the construction of a 645,000 square foot warehouse and distribution facility adjacent to the western side of the Union Pacific railroad track.17 Both projects are currently dormant, but are expected to be completed within the timeframe of this review. These vested projects would not be affected by annexation. The study area does not qualify as agricultural or open-space lands under LAFCO law. It also does not qualify as prime agricultural land. None of the affected assessor parcels are under an agricultural contact. The study area does lie within the Napa County Airport’s Compatibility Zone D, which marks the lands are routinely overflown by aircraft ranging in altitude between 300 to 1,000 feet above ground. This zone prohibits all residential uses as well as any other uses deemed hazardous to flight as determined by the Napa County Airport Land Use Commission.18

Category American Canyon County of NapaDesignation ………………………………Industrial ……………………………Industrial Designation Uses * .…………………………Manufacturing

..………………………………Aviation ……………………………Agribusiness .……………………Thematic Industrial .…………………………Business Park……………………………Warehouses ……………………Professional Offices ………………………Supporting Retail .……………………………Restaurants .…………………………Financial Uses

………………………Manufacturing …………………………Warehouses …Winery/Food Processing Facilities ……………Administrative Facilities .………………Research Institutions .…Limited Office/Commercial Uses

Zoning .…Napa County Airport Industrial Area ...……………………Industrial ParkDensity …………Minimum Lot Size: 5.0 Acres ………Minimum Lot Size: 5.0 Acres

* As noted, the County and American Canyon’s zoning for the affected territory is identical and ensures

future uses and densities within the study area would be the same under either jurisdiction.

15 The County’s AIASP guides growth management within the surrounding 3,000 acre area through 2025. 16 The County has received a separate application to construct a 279,000 square foot warehouse and distribution facility on

the larger of the two contiguous parcels comprising the Panattoni property. The application is on hold. 17 This vested project has been modified from an earlier approval by the County Planning Commission in 1999 to allow the

entire Headwaters property to be developed by the prior landowner (Beringer) to include a 1.4 million square foot warehouse for winery production and storage along with a commercial vineyard.

18 State law authorizes a city to override a determination by an Airport Land Use Commission by a two-thirds vote.

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Present and Probable Need for Public Facilities and Services Public facilities and services currently available or provided within the study area are considered basic and include fire protection and law enforcement from the County.19 The study area also receives basic services, directly and indirectly, from several countywide special districts relating to vector control, soil conservation, parks and open-space, and flood control. The basic level and scope of these present services in the study area appears appropriate given the affected lands are undeveloped. A full range of elevated public facilities and services are needed in the study area under both the urban land use designations and zoning standards adopted by the County and American Canyon. This includes, but is not limited to, an elevated level of community planning, police, fire, water, sewer, storm drainage, and street lighting and maintenance. These elevated services are expected to be needed in the timeframe of this review given two vested projects are already tied to two of the affected assessor parcels. American Canyon is the most logical multi-service provider for the study area based on service proximity.

Category County of Napa American Canyon Probable Need for Public Facilities/Services Yes Yes

Probable Need Based on Agency Land Use Designations Present Capacity of Public Facilities and Adequacy of Public Services Information collected and analyzed in the municipal service review indicates American Canyon has generally established adequate capacities to extend a full range of public facilities and services to the study area to accommodate its planned and probable urban uses under the County and City’s land use policies. Specific and pertinent capacity issues identified in the municipal service review relative to the study area’s potential development that should be addressed at the time annexation is proposed include:

Expansion of American Canyon’s water treatment and storage facilities to independently accommodate current and future peak-day demands.

Availability of potable water supplies to meet present and future service demands during dry-year conditions.

Improvements to traffic circulation to attain acceptable levels of services. Existence of Social or Economic Communities of Interest The study area’s social and economic interests are most strongly identified with American Canyon. These interests have been primarily fostered through the community’s long-standing expectation the study area would eventually become part of American Canyon given its inclusion within the City’s original ULL. The Commission recently recognized and strengthened these interests by including the affected lands in American Canyon’s extraterritorial water and sewer service areas. The County has also recognized these interests by agreeing to support the inclusion of the affected lands in the sphere as well as their annexation to American Canyon. These interests also appear reciprocal given all three of the current landowners within the study area have submitted letters of support to add their properties to the sphere to facilitate future annexation and development. 19 The property known as “Atkins” is located within ACFPD and is entitled to receive an elevated level of fire protection

services from the District as needed.

19


Conclusion Modifying American Canyon’s sphere to include the study area as well as the adjacent right-of-way portion of State Highway 29 appears warranted given the preceding analysis. Inclusion is consistent with the study area’s planned urban land uses under both the County and American Canyon General Plans. Inclusion would be responsive to the probable need for a full range of public services in which American Canyon is the most logical multi-service provider. Inclusion would also recognize the study area’s existing and distinct social and economic ties with American Canyon as well as support an agreement between the City and County regarding the long-term development of the Napa County Airport area. Additionally, inclusion is consistent with the adopted policies of the Commission with regard to facilitating orderly municipal growth. This includes guiding future urban uses away from any prime agricultural, agricultural, and open-space lands. Study Area B

This study area comprises approximately 26 unincorporated acres located west of American Canyon’s existing jurisdictional boundary and sphere near the intersection of Eucalyptus Drive and Wetlands Edge Road. The study area also lies immediately west of an unincorporated property commonly known as the “Eucalyptus Grove,” which is already in the sphere and west of a former landfill site. The study area represents a portion of a 113 acre assessor parcel purchased by American Canyon in 1999. American Canyon refers to the study area as “Clark Ranch West” and added the affected lands to the ULL in 2008. The study area is considered for inclusion into the sphere at the request of the American Canyon.

Clark Ranch West

Assessor Parcel Landowner Acre Size 058-020-013 (portion) City of American Canyon 26

20


Present and Planned Land Uses The study area is generally undeveloped with no permanent structures. The far eastern portion does include a small number of temporary structures and equipment associated with the American Canyon 4-H Club, which houses small farm animals and poultry on site. The study area was formerly part of a large commercial cattle ranch. The County designates the entire study area as Agriculture, Watershed and Open-Space. This designation contemplates a limited variety of non-urban uses ranging from agriculture to processing of agricultural products. The designation also allows for a single-family residence. The designation is supported by the County’s zoning standard of Agricultural Watershed for the portion of the affected assessor parcel, which specifies a minimum lot requirement of 160 acres. American Canyon designates the entire study area as Open-Space with the intent the lands be retained for open-space purposes, which includes passive recreation. American Canyon recently prezoned the study area Open Space – Clark West Ranch in conjunction with filing an annexation proposal with the Commission. This prezoning prescribes a minimum lot requirement of 10 acres. American Canyon is currently in the process of completing a trail system connecting the City to the Napa River that runs parallel along the southern and western perimeter of the study area. American Canyon anticipates developing the study area into a passive public recreational park. This anticipated use may also include building a public safety facility to accommodate both a park ranger and fire station. The fire station, if built, would be used and operated by ACFPD. The study area does not qualify as agricultural land or prime agricultural land under LAFCO law. It does, though, qualify as open-space land given the study area’s designation under the County General Plan. The affected assessor parcel is not subject to an agricultural contract. The study area does lie within the Napa County Airport’s Compatibility Zones D and E. Zone D applies to most of the study area and signals aircraft routinely fly-over at altitudes between 300 to 1,000 feet above ground. No residential uses as well as other uses deemed hazardous to flight by the Napa County Airport Land Use Commission are allowed. Zone E applies to a small southeast section of the study area and signifies aircraft routinely flyover at altitudes above 1,000 feet in the course of landing or departing. Any noise-sensitive outdoor uses are prohibited within this zone.

Category American Canyon County of NapaDesignation ………………………Open Space …Agriculture, Watershed & Open Space Designation Uses ……Private or Public Open Space

………………Passive Recreational ……………Resource Management

………………………………Agriculture ………………Processing of Agriculture

…………………Single-Family ResidenceZoning …Open Space - Clark West Ranch …………………Agricultural WatershedDensity ……Minimum Lot Size: 10 Acres …………Minimum Lot Size: 160 Acres

Present and Probable Need for Public Facilities and Services Public facilities and services currently available or provided within the study area are considered basic and include fire protection and law enforcement from the County. The study area also receives basic services, directly and indirectly, from several countywide special districts relating to vector control, soil conservation, parks and open-space, and flood

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control. The present basic level and scope of services in the study area appears appropriate given the affected lands are undeveloped for urban use. There is no probable need for a full range of elevated public facilities and services within the study area based on the non-urban land use designations and zoning standards adopted by both the County and American Canyon. A limited number of elevated public services, though, may be needed if the study area is annexed to American Canyon. In particular, this would include providing elevated community planning and law enforcement to accommodate and support the passive recreational use of the study area as contemplated by American Canyon. Other elevated services, such as water and sewer, may also be needed and defined when a specific project is proposed. American Canyon has indicated interest in proceeding with a master plan to guide the recreational development of the study area in the near future. If this development proceeds as contemplated, American Canyon is the most logical service provider in terms of delivering coordinated community planning and law enforcement as well as potentially extending water and sewer based on service proximity.

Category County of Napa American Canyon Probable Need for Public Facilities/Services No No

Need Based on Agency Land Use Designations

Present Capacity of Public Facilities and Adequacy of Public Services Information collected and analyzed in the municipal service review indicates American Canyon has established adequate capacities to extend a limited range of elevated public facilities and services in the study area needed to accommodate its potential passive recreational uses as contemplated by the City and allowed under its General Plan and Zoning Ordinance. The municipal service review does not identify any specific and pertinent capacity issues relative to American Canyon’s ability to accommodate this potential recreational use in terms of extending community planning and law enforcement services. This statement is predicated on presuming the demands would be relatively minimal; an assumption that would be reassessed at the time annexation is considered. Existence of Social or Economic Communities of Interest The study area has established distinct social and economic interests with both the County and American Canyon. The study area’s social and economic ties with the County were established in 1968 and drawn from its designation under the County General Plan as Agriculture, Watershed and Open Space. This designation carries significant local importance given it underlies the County’s sustained effort to maintain agriculture as the region’s primary land use as well as principal economic commodity. The designation also underscores an important social tie with the general public given they have repeatedly approved measures to protect all unincorporated agricultural lands as designated by the County from non-urban uses unless specifically authorized by voters. The study area’s social and economic interests with American Canyon were established in 1999 when the City purchased the affected lands with the intent of eventually developing the site into a passive recreational park. American Canyon has strengthened these social and economic ties by recently adding the study area to the ULL.

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Conclusion Modifying American Canyon’s sphere to include the study area does not appear warranted given the preceding analysis. Inclusion would conflict with the study area’s present and planned non-urban land uses under both the County and American Canyon General Plans, which suggest a full range of public services are not needed. Inclusion would also dismiss the tenured social and economic ties between the study area and the County. Additionally, inclusion would be inconsistent with the adopted policy of the Commission to use a city sphere to explicitly direct the location of urban development, which by practice has not been defined to include public parks. Furthermore, there does not appear to be sufficient public benefits outweighing the referenced policy considerations to support inclusion at this time. As an alternative to expanding the sphere, the Commission may consider allowing American Canyon to annex the study area under G.C. Section 56742. This statute allows LAFCOs to annex non-contiguous lands owned and used by the affected city for municipal purposes without consistency with their sphere. The statute also includes a “poison pill” to require automatic detachment if the affected city ceases to the landowner. Proceeding under this statute would allow American Canyon to coordinate elevated service provision within the study area consistent with its contemplated uses without diminishing the Commission’s assignment of the sphere as a demarcation of urban development. The Commission has used this statute before in accommodating city annexations of public parks, the most recent example involving Trancas Crossing to the City of Napa in February 2010.

Study Area C This study area comprises approximately 64 acres located west of American Canyon’s existing jurisdictional boundary and sphere near the intersection of American Canyon Road and Wetlands Edge Road. It includes two entire assessor parcels and a portion of a third assessor parcel. The study area is already incorporated with the exception of a 1.5 acre portion running along its entire eastern and a portion of the northern perimeter. The study area was previously owned by ACCWD before being transferred to American Canyon as part of the incorporation process. The study area was included in American Canyon’s original ULL and is considered for inclusion into the sphere at the request of the City.

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Assessor Parcels Landowner Acre Size 058-050-047 (portion) City of American Canyon 1.5 058-050-047 City of American Canyon 38 058-050-048 City of American Canyon 25

Present and Planned Land Uses The study area is presently undeveloped. The far eastern portion of the study area is currently used by American Canyon as a corporation yard associated with an adjacent public works facility. The western portion is substantially submerged by tidal waters from the Napa River and includes four inactive wastewater storage ponds formerly used by ACCWD. The County designates the entire study area as Cities, which memorializes its expectation the affected lands are or shall be eventually incorporated. The County does not zone the affected assessor parcels. American Canyon designates the entire study area as Public. This designation contemplates a limited number of quasi-urban uses ranging from government buildings to public schools. American Canyon has also zoned the affected assessor parcels Public, which does not prescribe a minimum lot requirement. There are no current projects tied to the study area. American Canyon has indicated an eventual interest in relocating the corporation yard to allow for the development of the dry portion of the study area into a public park. It is not expected this potential project would be initiated within the timeframe of this review.

The study area does not qualify as prime agricultural, agricultural, or open-space lands under LAFCO law. None of the affected assessor parcels are subject to an agricultural contract.

Category American Canyon County of NapaDesignation ………………………………Public ………………………………Cities Designation Uses ……Governmental Admin. Facilities

……………………Public Utilities ……………………………Schools ……………………Public Parking

………………………………Parks ……………………………Landfills

………………………………Cities

Zoning ………………………………Public …………………………N/A (97%) ………Agricultural Watershed (3%)

Density …………Minimum Lot Size: N/A …………Minimum Lot Size: N/A Present and Probable Need for Public Facilities and Services Nearly all of the study area is already entitled to receive a full range of elevated services from American Canyon given the affected lands are incorporated. The entire study area is located within ACFPD. The entire study area also receives basic services, directly and indirectly, from several countywide special districts involving vector control, soil conservation, parks and open-space, and flood control. The need for services is presently limited to basic public safety since the affected lands are undeveloped for urban use.

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There is a potential need for a full range of elevated public facilities and services within the study area based on the quasi-urban land use designation and zoning standard adopted by American Canyon. Future needs, however, are likely to be limited to community planning and law enforcement to accommodate and support the potential use of the study area as a passive recreational park as contemplated by American Canyon. Other elevated services, such as water and sewer, may also be needed and defined when a specific project is proposed. American Canyon has indicated no timetable for pursuing this development. Nonetheless, if development does eventually proceed, American Canyon is the most logical service provider in terms of delivering coordinated community planning and law enforcement services as well as potentially extending water and sewer.

Category County of Napa American Canyon Probable Need for Public Facilities/Services N/A Yes


Present Capacity of Public Facilities and Adequacy of Public Services Information collected and analyzed in the municipal service review indicates American Canyon has adequate capacities to provide the limited range of elevated public facilities and services in the study area needed to accommodate its contemplated passive recreational uses. There are no specific and pertinent capacity issues identified in the municipal service review relative to American Canyon’s ability to extend the probable need for elevated community planning and law enforcement services to the study area if it is eventually developed. This statement is predicated on presuming the demands would be relatively minimal; an assumption that would be reassessed at the time an annexation is proposed for the 1.5 acre unincorporated portion of the study area. Existence of Social or Economic Communities of Interest The study area’s social and economic communities of interest are most strongly identified with American Canyon. Economic interests were established at the time of American Canyon’s incorporation when the City assumed ownership of the entire study area. Social interests are drawn from the inclusion of the majority of the study area within American Canyon’s jurisdictional boundary and expectation the site will eventually be developed into a passive recreational park. The American Canyon General Plan supports these social and economic ties by including the entire study area within the City’s ULL. Conclusion Modifying American Canyon’s sphere to include the study area does not appear warranted given the preceding analysis. Inclusion would conflict with the lack of a current or probable need for public services in the study area in the timeframe of this review. Additionally, inclusion would be inconsistent with the adopted policy of the Commission to use a city sphere to explicitly direct the location of urban development, which has not been defined by practice to include public parks. There also does not appear to be sufficient public benefits outweighing the referenced policy considerations to support inclusion at this time.

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Study Area D This study area comprises approximately 22 unincorporated areas located north of American Canyon’s existing jurisdictional boundary and sphere near the intersection of American Canyon Road and Newell Drive. The study area includes one entire assessor parcel and portions of two other assessor parcels. It also includes an adjacent portion of American Canyon Road. The study area was included in American Canyon’s original ULL and was recently purchased by the Napa Valley Unified School District (NVUSD), which is slated to begin construction of a new middle school on the site later this year. The unincorporated land to the west, which is already in the sphere, is also owned by NVUSD and currently under construction to include a new high school. The study area is considered for inclusion into the sphere at the request of the American Canyon.

High School Site

Middle School Site

Assessor Parcels Landowner Acre Size 059-040-075 (portion) Napa Valley Unified School Dist. 1.9 059-040-076 Napa Valley Unified School Dist. 17.5 059-040-077 Napa Valley Unified School Dist. 2.7

Present and Planned Land Uses The study area is currently undeveloped. Although previous attempts have been made, there is no documentation or evidence indicating the study area has been developed or utilized in the past for any uses other than perhaps for livestock grazing.20 The County designates the entire study area as Agriculture, Watershed and Open-Space. This designation contemplates a limited variety of non-urban uses ranging from agriculture to processing of agricultural products. The designation also allows for a single-family residence. The designation is supported by the County’s zoning standard of Agricultural Watershed for the affected assessor parcels, which specifies a minimum lot requirement of 160 acres. American Canyon designates the entire study area as Public. This designation contemplates a limited number of quasi-urban uses ranging from government buildings to 20 In 1989, the study area’s former landowner proposed developing the site along with adjacent lands into a country club

anchored by an 18-hole golf course. The proposed project was eventually withdrawn by 1996.

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public schools. American Canyon has also zoned the affected assessor parcels Public in conjunction with filing an annexation application with the Commission. This prezoning standard does not prescribe a minimum lot requirement. As allowed under the law, NVUSD has approved a project to develop the study area into an approximate 50,000 square foot middle school.21 The middle school is expected to accommodate up to 700 students and include a number of auxiliary facilities. NVUSD anticipates starting construction this year with a targeted completion date of August 2012. The study area does not qualify as prime agriculture or agricultural land under LAFCO law. It does, however, qualify as open-space given the study area’s designation under the County General Plan. None of the affected assessor parcels are subject to an agricultural contract. Category American Canyon County of NapaDesignation …………………………………Public …Agriculture, Watershed and Open Space Designation Uses ………Governmental Admin. Facilities

………………………Public Utilities ………………………………Schools ………………………Public Parking

…………………………………Parks ………………………………Landfills

…………………………………Agriculture …………………Processing of Agriculture

……………………Single-Family Residence

Zoning …………………………………Public ……………………Agricultural WatershedDensity ……………Minimum Lot Size: N/A ……………Minimum Lot Size: 160 Acres

Present and Probable Need for Public Facilities and Services Public facilities and services currently provided or available within the study area are considered basic and include fire protection and law enforcement from the County. The study area also receives basic services, directly and indirectly, from several countywide special districts involving vector control, soil conservation, parks and open-space, and flood control. The present basic level and scope of services in the study area appears appropriate given the affected lands are undeveloped. A full range of elevated public facilities and services are needed in the study area based on NVUSD’s pending development of the study area to include a middle school. This includes, but is not limited to, an elevated level of police, fire, water, sewer, storm drainage, and street lighting and maintenance services. American Canyon is the most logical multi-service provider for the study area.

Category County of Napa American Canyon Probable Need for Public Facilities/Services No Yes

Need Based on Agency Land Use Designations Present Capacity of Public Facilities and Adequacy of Public Services Information collected and analyzed in the municipal service review indicates American Canyon has generally developed adequate capacities to extend a full range of public facilities and services to the study area to accommodate its pending middle school use. Specific and pertinent capacity issues identified in the municipal service review relative to the study area’s development that should be addressed at the time annexation is proposed include:

21 G.C. Section 53094 exempts public school districts from complying with local land use zoning standards.

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Improvements to traffic circulation to attain acceptable levels of services.

Existence of Social or Economic Communities of Interest The study area’s social and economic communities of interests are most strongly identified with American Canyon. Social interests with American Canyon were formally established in 1997 when the study area was added to the original ULL and marking a long-standing planning assumption the affected lands would eventually become part of the City. Social interests have been strengthened and expanded to include economic ties with the pending development of the study area into a middle school to serve the American Canyon community. In addition, county voters affirmed their support in constructing the middle school in approving the underlying funding bond measure in 2006. This support lessens the relevance of the social and economic ties existing between the study area and the County drawn from its agricultural designation under the County General Plan.

Conclusion

Modifying American Canyon’s sphere to include the study area appears warranted given the preceding analysis. Inclusion is consistent with the pending use of the study area as a middle school and supports the associated need for a full range of public services in which American Canyon is the most logical multi-service provider. Inclusion would also recognize the study area’s existing and distinct social and economic ties with American Canyon.

Notwithstanding the above statements, inclusion of the study area is inconsistent with the adopted policy of the Commission to exclude lands designated for agricultural use under the County General Plan from city spheres for purposes of urban development. This inconsistency, however, appears substantively muted because the middle school would serve both incorporated and non-incorporated students, and therefore supportive of both urban and non-urban development.

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Study Area E This study area comprises approximately 477 unincorporated acres located along the eastern perimeter of American Canyon’s existing jurisdictional boundary and sphere. The study area encompasses four entire assessor parcels and portions of five other assessor parcels. It also includes adjacent portions of Newell Drive and Watson Lane and is bisected west-to-east by a Pacific Gas & Electric tower transmission line. The study area was included in American Canyon’s original ULL and is considered for inclusion into the sphere at the City’s request.

Assessor Parcels Landowner Acre Size 057-120-017 Cecil A. Paoli 5.6 059-020-008 Jamcan LLC 7.4 059-020-009 Jamcan LLC 126.6 059-020-010 John and Margaret Roche 1.1 059-020-011 Steven Clerici 10.1 059-020-029 (portion) Jamcan LLC 91.4 059-020-032 Gary W. Clarke 51.8 059-030-003 (portion) Pamela Smith 112.1 059-030-004 (portion City of American Canyon 9.8 059-040-048 (portion) Pamela Smith 26.5 059-040-079 (portion) Edward and Charlotte Biggs 35.4

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Present and Planned Land Uses The study area is predominately undeveloped. The majority of the study area lies south of Watson Lane and consists of native grassland along with three single-family residences. The remaining portion of the study area lying north of Watson Lane consists of commercial vineyards and two single-family residences. The County designates the entire study area as Agriculture, Watershed and Open-Space. This designation contemplates a limited variety of non-urban uses ranging from agriculture to processing of agricultural products. The designation also allows for a single-family residence. The designation is supported by the County’s zoning standard of Agricultural Watershed for the affected assessor parcels, which specifies a minimum lot requirement of 160 acres. American Canyon designates and prezones nearly two-thirds of the study area as Special Study, which specifies all uses and densities be determined by a subsequent study. American Canyon designates and prezones the remaining portion as Town Center. These assignments contemplate a broad mix of urban uses ranging from residential to visitor-serving facilities. Actual uses and densities would be determined as part of a future specific plan. Markedly, these land designations and prezoning standards for the study area were adopted by American Canyon in August 2008 in response to a citizens initiative certified to have been signed by more than 10% of eligible voters. There are no current projects tied to the study area. However, as referenced above, American Canyon has designated one-third of the study area lying immediately adjacent to the City’s current sphere as Town Center. This is a new designation for the affected lands and represents an expansion of a long-standing proposed project tied to an approximate 100 acre area immediately south of the study area involving three assessor parcels collectively referred to as the horsehoe. The most recent version of the town center project was prepared in May 2006 and involved developing the 100 acre area site south of the study area into 600 to 650 new multi-residential units along with a mixture of commercial, retail, and public uses. American Canyon has decided to expand the scope of the proposed project to include 130 additional acres lying within the study area to allow, among other things, for the expansion of Newell Drive to South Napa Junction Road. Nearly one-half of the study area qualifies as both prime agricultural and agriculture land under LAFCO law. The entire study area qualifies as open-space land based on its designation under the County General Plan. There are also several agricultural contracts pertaining to five of the affected assessor parcels covering 251 acres. 22 Close to three-fourths of the study area lies within the Napa County Airport’s Compatibility Zones D and E. Zone D applies to approximately 55 acres located in the far northern portion of the study area and signals aircraft routinely fly-over at altitudes between 300 to 1,000 feet above ground. No residential uses as well as other uses deemed hazardous to flight by the Napa County Airport Land Use Commission are allowed. Zone E applies to approximately 287 acres lying within the middle section of the study area and signifies

22 The affected assessor parcels within the study area that are subject to a Williamson Act contact are identified as 059-020-

009, 059-020-008, 059-020-029, 059-030-004, and 059-020-032. The first three affected assessor parcels listed are owned by Jamcan, LLC and are under the same contact, which is set to expire in 2012. G.C. Section 56426.6 directs LAFCOs not to approve inclusion of lands under Williamson Act contracts into city spheres unless it makes one of two findings: 1) inclusion would facilitate orderly growth and the public’s interest in the jurisdictional change outweighs the public interest in continuing the contract or 2) inclusion will not adversely affect the continuation of the contract.

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aircraft routinely fly-over at altitudes above 1,000 feet in the course of landing or departing. Any noise-sensitive outdoor uses are prohibited within this zone.

Category American Canyon County of NapaDesignation ..............................Special Study Area (SS); 66%

......................................Town Center (TC); 33% .....Agriculture, Watershed and Open Space

Designation Uses ........................................To Be Determined (SS) ....Government and Community Services (TC) .......................................Retail Commercial (TC) ....................................Professional Offices (TC) ..............................................Entertainment (TC) ...................................................Restaurants (TC) .........................................Cultural Facilities (TC) .............................Visitor-Serving Facilities (TC) ...........................................................Transit (TC) ............................Multi-Family Residential (TC)

........................................................Agriculture

...............................Processing of Agriculture

.................................Single-Family Residence

Zoning ..............................Special Study Area (SS); 66% ......................................Town Center (TC); 33%

...................................Agricultural Watershed

Density .................Minimum Lot Size: N/A (SS) (TC) .....................Minimum Lot Size: 160 Acres

Present and Probable Need for Public Facilities and Services Public facilities and services currently provided or available within the study area are generally considered basic and include fire protection and law enforcement from the County. The study area also receives basic services, directly and indirectly, from several countywide special districts involving vector control, soil conservation, parks and open-space, and flood control. Water service is provided by American Canyon to two of the affected assessor parcels located along Watson Lane as a result of the City assuming ACCWD’s service obligations at the time of incorporation.23 The present level and scope of services in the study area appears appropriate relative to current land uses. There is no need for a full range of elevated public facilities and services in the study area based on the County’s non-urban land use designations and zoning standards. The probable need for these types of facilities and services would only be triggered if the study area is annexed to American Canyon. As noted, American Canyon has designated and prezoned two-thirds of the study area for urban type development as part of a town center project. Elevated services required to support this potential urban use includes, but is not limited to, an elevated level of community planning, police, fire, water, sewer, storm drainage, and street lighting and maintenance. American Canyon has expressed interest in submitting an annexation proposal for this portion of the study area in the near future. It is unknown whether any elevated public services are needed in the remaining portion of the study area. The uncertainly is drawn from the lack of specificity in American Canyon’s land use designation and prezoning standard for the affected lands.

Category County of Napa American Canyon Probable Need for Public Facilities/Services No Yes (TC)

N/A (SS)


23 Water service provided by American Canyon in the study area involves assessor parcels 059-020-010 and 059-020-011.

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Present Capacity of Public Facilities and Adequacy of Public Services Information collected and analyzed in the municipal service review does not indicate American Canyon has adequate capacities to extend a full range of public facilities and services to the study area to accommodate its potential urban uses. American Canyon’s water and sewer services, for example, are guided by facility plans contemplating future demands in the study area based on previous land use designations under the City General Plan, Commercial Recreation and Special Study. These facility plans, accordingly, anticipate relatively minimal to no future water and sewer demands in the affected lands through 2025, which appear no longer applicable since two-thirds of the study area is now designated as Town Center. Uncertainties involving American Canyon’s ability to accommodate other demands in the study area without overtaxing present capacities are also generated due to the redesignations and their lack of specificity in use and density types. Existence of Social or Economic Communities of Interest The study area’s social and economic interests are most strongly identified with the County. These ties were established in 1968 and drawn from the study area’s designation under the County General Plan as Agriculture, Watershed and Open Space. This designation carries significant local importance given it underlies the County’s sustained effort to maintain agriculture as the region’s primary land use as well as principal economic commodity. The designation also underscores an important social tie with the general public given they have repeatedly approved measures to protect all unincorporated agricultural lands as designated by the County from non-urban uses unless authorized by voters. These interests predate the social and economic ties existing between the study area and American Canyon that were established in 1997 when the City included the affected lands within its original ULL. Conclusion Modifying American Canyon’s sphere to include the study area does not appear warranted given the preceding analysis. Inclusion is inconsistent with the present and planned non-urban land uses of the study area under the County General Plan. Inclusion may also be inconsistent with the American Canyon General Plan given it does not specify whether urban or non-urban uses are planned for the eastern portion of the study area given its Special Study designation. It is also unknown whether inclusion is consistent with American Canyon’s facility and service capacities given the lack of specified uses and densities for the entire study area under the City General Plan. Furthermore, inclusion is inconsistent with Commission’s policy to exclude lands designated for agricultural use under the County General Plan for urban development, which at a minimum applies to the western portion of the study area tied to the town center project. A sizeable portion of the study area also qualifies as prime agricultural farmland. Finally, there does not appear to be sufficient public benefits outweighing the referenced policy considerations to support inclusion at this time.

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Study Area F This study area comprises approximately 7.0 unincorporated acres located immediately adjacent to the far northern perimeter of American Canyon’s existing jurisdictional boundary and sphere. It encompasses two entire assessor parcels and an adjacent portion of State Highway 29. The study area was included in American Canyon’s original ULL, but removed as part of the 2008 revision. The study area is considered for inclusion into the sphere by staff given the affected lands are surrounded nearly four-fifths by American Canyon’s ULL.

Assessor Parcels Landowner Acre Size 057-090-004 Frank and Shirley Azevedo 3.4 057-090-027 William and Lena Gonsalves 1.0

Present and Planned Land Uses The study area is developed. The larger of the two affected assessor parcels is used as part of an automobile salvage business and consists of an approximate 1,300 square foot building and paved lot used to line available car and trucks for part purchases. The smaller of the two affected assessor parcels consists of a legal non-conforming single-family residence. The adjacent right-of-way section of State Highway 29 includes four traffic lanes and a native grass medium operated by the California Department of Transportation.

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The County designates the entire study area as Industrial. This designation contemplates a variety of urban non-residential uses ranging from manufacturing to office space. The designation is supported by the County’s zoning standard of Industrial Park for all of the affected assessor parcels, which specifies a minimum lot requirement of 5.0 acres. Specific development and design standards for the study area are outlined in the County’s AIASP. American Canyon previously designated the study area as Industrial before deleting this assignment in 2008 when the City removed the affected lands from its ULL in response to the aforementioned citizens initiative. The study area does not qualify as prime agricultural, agricultural, or open-space lands under LAFCO law. None of the affected assessor parcels are under an agricultural contact. The study area does lie within the Napa County Airport’s Compatibility Zone D, which marks the lands are routinely overflown by aircraft ranging in altitude between 300 to 1,000 feet above ground. This zone prohibits all residential uses as well as any other uses deemed hazardous to flight as determined by the Napa County Airport Land Use Commission.

Category American Canyon County of NapaDesignation …………………………………N/A ……………………………Industrial Designation Uses …………………………………N/A ………………………Manufacturing

…………………………Warehouses …Winery/Food Processing Facilities ……………Administrative Facilities ………………Research Institutions

……Limited Office/Commercial Uses

Zoning …………………………………N/A ………………………Industrial ParkDensity …………………………………N/A ………Minimum Lot Size: 5.0 Acres

Present and Probable Need for Public Facilities and Services Public facilities and services currently provided or available within the study area are generally considered basic. This includes law enforcement from the County as well as services, directly and indirectly, from several countywide special districts relating to vector control, soil conservation, parks and open-space, and flood control. The larger of the two affected assessor parcels also receives fire protection from the County while the remaining assessor parcel is located within ACFPD. No public water or sewer service is currently provided. The present level and scope of services in the study area appears inadequate relative to current urban land uses. A full range of elevated public facilities and services are needed in the study area under the urban land use designation and zoning standard adopted by the County. This includes, but is not limited to, an elevated level of community planning, police, fire, water, sewer, storm drainage, and street lighting and maintenance. The need for these elevated public facilities and services is already present and will be intensified upon the planned development of the surrounding lands under the AIASP. American Canyon is the most logical multi-service provider for the study area based on service proximity.

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Category County of Napa American Canyon Probable Need for Public Facilities/Services Yes N/A


Present Capacity of Public Facilities and Adequacy of Public Services Information collected and analyzed in the municipal service review indicates American Canyon has adequate capacities to extend a full range of public facilities and services to the study area to accommodate its current and planned urban uses. Specific and pertinent capacity issues identified in the municipal service review relative to the study area’s present and potential intensification under the AIASP that would need to be addressed at the time annexation is proposed include:



Improvements to traffic circulation to attain acceptable levels of services. Existence of Social or Economic Communities of Interest The study area’s social and economic interests are most strongly identified with American Canyon. These interests were fostered until recently through the standing expectation the study area would eventually become part of American Canyon given its inclusion within the City’s original ULL before it was removed in 2008. Notwithstanding the change to the ULL, pertinent social and economic ties between the study area and American Canyon continue to exist. This includes the inclusion of the study area within American Canyon’s Commission-defined extraterritorial water and sewer service areas. Conclusion Modifying American Canyon’s sphere to include the study area appears warranted given the preceding analysis. Inclusion is consistent with the present and planned urban land uses under the County General Plan, which necessitates an elevated level of public facilities and services in which American Canyon is best situated to provide. Inclusion also reflects and strengthens existing social and economic interests between the study area and American Canyon. Inclusion is also consistent with the adopted policies of the Commission. This includes facilitating a more logical jurisdictional boundary line for American Canyon in concert with the earlier recommendation to add Study Area A to the sphere and thereby eliminate the potential future creation of an unincorporated pocket.24

24 The term “unincorporated pocket” is not defined. This term is intended to describe a portion of unincorporated land

substantially surrounded by a city without qualifying as an” island” under G.C. Section 56375.3.

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VI. RECOMMENDATION It is recommended the Commission update American Canyon’s sphere to include all lands comprising Study Areas A, D, and F. It is also recommended the Commission add a right-of-way portion of State Highway 29 adjacent to Study Area A. The total size of the recommended additions to the sphere is 323 acres. These additions support American Canyon’s orderly growth and development in a manner consistent with the provisions of CKH and the adopted policies of the Commission. Adding Study Area A also supports an agreement between American Canyon and the County in which the two agencies agree the City’s sphere should include the affected lands for purposes of facilitating their annexation. Study Areas B, C, and E are not recommended for inclusion into the sphere given their additions are inconsistent with Commission’s legislative directives and local policies. In particular, Study Areas B and C are not recommended for inclusion based on the Commission’s basic policy to use spheres as explicit guides to urban development. This policy supports excluding the two study areas since American Canyon contemplates developing both sites into passive recreational parks; a use that by practice has not been considered urban by the Commission. Study Area E is not recommended for inclusion because the affected lands are all designated for agricultural use under the County General Plan and a sizeable portion also qualifies as prime agricultural land under LAFCO law. There is also a lack of pertinent information regarding the future uses and densities of the affected lands under the American Canyon General Plan. This information is needed, among other purposes, for the Commission to effectively evaluate potential service needs and impacts within the affected lands relative to American Canyon’s available and planned capacities.25 The information is also a necessary prelude for the Commission to consider the merits of making an exception to the referenced policy considerations. The following statements are based on information analyzed in this report and have been prepared in support of the preceding recommendation pursuant to G.C. Section 56425:

1. Present and planned land uses in the sphere, including agricultural and open-space lands.

Lands within American Canyon’s updated sphere are predominately developed for urban uses or expected to be developed for urban uses within the next five years. Agricultural and open-space lands are limited and would not be impacted, directly or indirectly, as a result of the update.

2. The present and probable need for public facilities and services in the sphere.

Lands within American Canyon’s updated sphere presently need an elevated level of public services or are expected to need an elevated level of public services within the next five years to accommodate and support planned urban uses.

25 Specific information regarding land use types and densities is also needed to evaluate potential direct and indirect impacts

on the environment tied to expanding the sphere to include Study Area E.

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3. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide.

The Commission’s recently completed municipal service review on the southeast county region indicates American Canyon has generally established adequate administrative, service, and financial capacities to accommodate present and planned urban uses within the updated sphere.

4. The existence of any social or economic communities of interest in the sphere if the commission determines that they are relevant to the agency.

Lands within the updated sphere have established social and economic interdependencies with American Canyon distinct from neighboring unincorporated areas. The update affirms and strengthens these established community ties.

II. EXECUTIVE SUMMARY A. Overview Napa County’s southeast region has experienced significant growth over the last 10 years. This growth is evident in the region’s population, which has increased by more than two-thirds from an estimated 9,497 to 16,347. Comparatively, the rest of Napa County has experienced a population increase over the same period of less than one-tenth from an estimated 111,048 to 120,357. The primary factors contributing to the region’s growth have been the continued development of American Canyon and the Napa County Airport area. The development of these two distinct communities has not only contributed to the region’s growth in terms of population and building but also in expanding the level and range of municipal services to accommodate increasing demands. The relationship is best illustrated by considering the increase demand for water, which is provided throughout the region by American Canyon. During the last 10 years, water demands in the region have more than doubled from 1,761 to 3,953 acre-feet. This increase of 2,192 acre-feet in water demands roughly equals the size of Bell Canyon Reservoir in St. Helena. This report identifies the three local agencies responsible for directly supporting the region’s growth, American Canyon, ACFPD, and CSA No. 3, have generally established adequate administrative controls and service capacities consistent with the needs of their communities. This includes all three agencies making considerable investments recently in expanding public infrastructure and facilities to accommodate their growing constituencies. Prominent examples include American Canyon building a wastewater treatment plant and administrative center as well as partnering with ACFPD on a new joint-use public safety facility. The investment in new public infrastructure and facilities in the region has largely been funded by increasing development-related revenues, such as property taxes, special parcel assessments, and building fees. Notably, American Canyon and ACFPD’s annual shares of property tax revenues have increased by 326% and 239%, respectively, during the last 10 years. These amounts represent the largest percentage increases in property tax revenues for all cities and special districts in Napa County. Given American Canyon and ACFPD are largely dependent on development-related revenues, the current downturn in the economy and its impact in declining property values presents new and considerable challenges in balancing costs with available funding within their respective jurisdictions. Effective financial management in the years leading up to the current downturn has positioned all three agencies in the region to rely on accumulated reserves to absorb spending shortfalls in the short-term. Further, all three agencies currently have fund balances representing more than 20% of their operating costs, which exceeds the national standard of 10%. The longer the downturn persists, however, the more likely capital improvements will need to be deferred and service levels reduced. Additionally, while the downturn has decreased the volume of activity, it is still expected the region will continue to experience the largest percentage of growth in Napa County over the next several years as several vested projects materialize. This includes several non-residential projects that will further diversify land uses in the region, such as the Town Center and Montalcino Resort. Importantly, this anticipated growth will continue to generate new demands for municipal services.

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B. Determinations As mentioned, as part of the municipal service review process, the Commission must prepare written determinations addressing the service factors enumerated under G.C. Section 56430. The service factors range in scope from considering infrastructure needs and deficiencies to relationships with growth management policies. The determinations serve as statements or conclusions and are based on information collected, analyzed, and presented in the individual agency reviews. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies.

• American Canyon, ACFPD, and CSA No. 3 have made considerable investments in their public facilities over the last several years to improve the level and range of their respective services in the region.

• American Canyon has made a concerted effort to address the service needs of the

unincorporated territory located within its adopted urban limit line. This planning effort provides reasonable assurances American Canyon is capable of efficiently extending services to annexed territory within its urban limit line without adversely affecting existing constituents.

• American Canyon is the only public water service provider in the region and has

contracted adequate supplies to meet the current and future needs under normal conditions within the timeframe of this review. These contracted supplies, however, are not sufficient to meet current or future water demands during dry-year conditions when significant cutbacks are made to the State Water Project.

• American Canyon has been diligent in addressing anticipated shortfalls in water

supplies during dry-years by proactively purchasing additional supplies as needed. This practice, however, is becoming increasingly expensive and is not recovered by American Canyon through its water service rates.

• American Canyon requires infrastructure improvements to expand its water treatment

and storage capacities to independently accommodate existing and future peak demands in the region. In the absence of these improvements, American Canyon’s water system is subject to pressure losses and service interruptions during high-demand periods.

• American Canyon is the primary public sewer service provider in the region and has

established adequate collection, treatment, and discharge capacities to meet current and future service demands within the timeframe of this review.

• American Canyon’s contract with the County of Napa’s Sheriff Department for

staffing resources provides an appropriate and flexible level of police protection services in the City.

• ACFPD and CSA No. 3 have established effective fire protection services in their respective jurisdictions as measured by their current response times, which both average less than five minutes from dispatch to arrival. These average response times are within the national standard of six minutes and demonstrate both agencies are meeting the service demands in their jurisdictions in an efficient and timely manner.

• CSA No. 3 should adopt and incorporate a standard response time into their contract

with the County of Napa for fire protection services. The adoption of a standard response time will help CSA No. 3 measure and manage fire protection resources within its jurisdiction.

• The majority of intersections along State Highway 29 in the region are operating at

unacceptable levels of service resulting in significant traffic congestion during peak commute hours. Addressing these deficiencies is critical to improving quality of life for affected commuters and residents. Actual solutions will require considerable funding as well as cooperation between state and local agencies in implementing coordinated traffic circulation improvements in the region.

Growth and population projections for the affected area.

• The region has experienced an approximate two-thirds increase in population over the last five years. This increase has made the region one of the fastest growing areas in terms of percentages in the Bay Area.

• The significant rise in the region’s population over the last five years directly

corresponds with an influx of new residential construction in American Canyon, which increased its total number of housing units from 3,246 to 5,591. Nearly four-fifths of the new housing in American Canyon involves single-family residences.

• American Canyon will continue to develop given its land supply and expanding job

market. However, it is reasonable to project the current downturn in the economy will reduce American Canyon’s population increase relative to recent years to no more than 2.0% annually over the next several years. This projection will result in American Canyon’s population reaching an estimated 17,989 by 2013.

• CSA No. 3’s jurisdiction has experienced an approximate one-fifth increase in building

square feet over the last five years. A review of existing entitlements in CSA No. 3 indicate this growth will continue within the timeframe of this review as nearly all vacant land within its jurisdiction is already tied to an approved or underway project.

• The region has experienced the development of its first four hotels over the last five

years. If fully occupied, these hotels are expected to produce an estimated visitor serving population of 824 and will produce new impacts on the region’s service infrastructure.

Financial ability of agencies to provide services. • American Canyon, ACFPD, and CSA No. 3 have prudently managed their finances

over the last several years allowing the agencies to utilize accumulated reserves to help absorb cost-increases while maintaining service levels during the current economic downturn.

• American Canyon, ACFPD, and CSA No. 3 are in relatively good financial standing

given the agencies are expected to finish the current fiscal year with reserves equaling 20% or more of their respective operating costs. Additionally, these agencies have very low debt-to-equity ratios, indicating healthy capital structures.

• American Canyon and ACFPD are dependent on property taxes to fund significant

portion of their services. This dependency makes these agencies particularly vulnerable to reducing costs the longer the current economic downturn continues given its negative impact on new building construction and assessed values in the region.

• The extent of the current economic downturn’s impact on the region is illustrated by

the estimated 1.8% loss in total assessed values in American Canyon since 2007-2008. This estimate represents the first decline in overall assessed values in American Canyon since its incorporation.

Status of, and opportunities for, shared facilities.

• American Canyon, ACFPD, and CSA No. 3 actively partner with other local public and private entities to share facilities and resources. These efforts strengthen social and economic ties while expanding and economizing services throughout the region.

Accountability for community service needs, including governmental structure and operational efficiencies.

• American Canyon and ACFPD’s meetings are conducted together on the first and third Tuesday of each month and broadcast on local public access television. These regularly scheduled meetings provide an opportunity for the agencies’ constituents to ask questions of their representatives and help ensure service information is being effectively communicated to the public.

• The County of Napa conducts the business of CSA No. 3 as needed. Given the lack

of meetings, CSA No. 3 should consider establishing a website dedicated to agency business to help inform and engage its constituents.

Relationship with regional growth goals and policies.

• American Canyon and the County of Napa recently negotiated an agreement regarding the planned development of the City. The agreement includes a revised urban limit line for American Canyon, which is to remain unchanged through 2030. Notably, as part of the agreement, the County agrees to support American Canyon’s request on file with the Commission to amend the City’s sphere of influence to include certain properties located in the Napa County Airport industrial area. This agreement represents a collaborative effort by the agencies to establish shared value and vision with regard to regional growth goals and policies.

• CSA No. 3 serves a key role in facilitating the implementation of the County of Napa’s

Airport Industrial Area Specific Plan with respect to providing organized fire protection and street maintenance services for the affected community.

LOCAL AGENCY FORMATION COMMISSION OF NAPA COUNTY

POLICY DETERMINATIONS

I) POLICIES CONCERNING THE PRESERVATION OF AGRICULTURE AND

OPEN-SPACE LANDS AND THE PROMOTION OF ORDERLY, WELL-PLANNED DEVELOPMENT A) LEGISLATIVE INTENT AND DECLARATIONS

The Commission acknowledges and incorporates into its own policies, the policies of the Legislature regarding the promotion of orderly, well-planned development patterns that avoid the premature conversion of agricultural and open-space lands and ensure effective, efficient and economic provision of essential public services. The Commission wishes to specifically note the following declarations and policies contained in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000:

1) The Legislature recognizes that the logical formation and determination of

local agency boundaries is an important factor in promoting orderly development and in balancing that development with sometimes competing state interests of discouraging urban sprawl, preserving open-space and prime agricultural lands, and efficiently extending government services. (G.C. §56000)

2) It is the intent of the Legislature that each commission, not later than

January 1, 2002, shall establish written policies and procedures and exercise its powers pursuant to this part in a manner consistent with those policies and procedures and that encourages and provides planned, well-ordered, efficient urban development patterns with appropriate consideration of preserving open-space lands within those patterns. (G.C. §56300)

3) In reviewing and approving or disapproving proposals which could

reasonably be expected to induce, facilitate, or lead to the conversion of existing open-space lands to uses other than open-space uses, the commission shall consider all of the following policies and priorities:

a) Development or use of land for other than open-space uses shall be guided away from existing prime agricultural lands in open-space use toward areas containing nonprime agricultural lands, unless that action would not promote the planned, orderly, efficient development of an area.

b) Development of existing vacant or nonprime agricultural lands for urban uses within the existing jurisdiction of a local agency or within the sphere of influence of a local agency should be encouraged before any proposal is approved which would allow for or lead to the development of existing open-space lands for non-open-space uses which are outside of the existing jurisdiction

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of the local agency or outside of the existing sphere of influence of the local agency. (G.C. §56377)

B) POLICIES OF THE COMMISSION

The Commission declares its intent not to permit the premature conversion of designated agricultural or open-space lands to urban uses. The Commission shall adhere to the following policies in the pursuit of this intent, and all proposals, projects, and studies shall be reviewed with these policies as guidelines.

1) USE OF COUNTY GENERAL PLAN DESIGNATIONS In evaluating a proposal, the Commission will use the Napa County General Plan to determine designated agricultural and open-space lands. The Commission recognizes that inconsistencies may occur between the County General Plan and the affected city general plan with respect to open-space designations. Notwithstanding these potential inconsistencies, the Commission will rely on the Napa County General Plan in recognition of the public support expressed in both the incorporated and unincorporated areas of Napa County for the County's designated agricultural and open-space lands through enactment of Measure "J", the Agricultural Lands Preservation Initiative passed by the voters in 1990.

2) TIMING OF URBAN DEVELOPMENT The Commission shall guide development away from designated agricultural or open-space lands until such times as urban development becomes an overriding consideration in providing for the health and welfare of the citizens of the County and the affected city.

3) FACTORS FOR EVALUATING PROPOSALS INVOLVING AGRICULTURAL OR OPEN-SPACE LANDS A proposal which includes agricultural or open-space designated land shall be evaluated in light of the existence of the following factors:

a) "Prime agricultural land", as defined by Government Code

Section 56064. b) "Open-space", as defined by Government Code Section 56059. c) Land that is under contract to remain in agricultural or open-

space use, such as a Williamson Act Contract or Open-Space Easement.

d) Land which has a Napa County General Plan agricultural or open-space designation (Agricultural Resource or Agriculture, Watershed and Open-space).

e) The adopted general plan policies of the County and the affected city.

LAFCO GENERAL POLICY DETERMINATIONS 2

f) The agricultural economic integrity of land proposed for conversion to urban use as well as adjoining land in agricultural use.

g) The potential for the premature conversion of adjacent agricultural or open-space designated land to urban use.

h) The potential of vacant non-prime agricultural land to be developed with a use that would then allow the land to meet the definition of prime agricultural land under the Williamson Act.

4) ENCOURAGEMENT OF REORGANIZATIONS

The Commission encourages reorganization proposals as a means of coordinating actions of local governmental agencies involving, but not limited to, annexation of land to two public agencies. The Commission recognizes the usefulness of the reorganization concept as a vehicle designed to simplify and expedite such actions.


II) POLICIES CONCERNING SPHERES OF INFLUENCE It is the intent of the Commission to establish spheres of influence that promote the orderly expansion of cities to ensure effective, efficient and economic provision of essential public services, including public sewer and water, fire protection and emergency response, and police protection. A) LEGISLATIVE INTENT AND DECLARATIONS

The Commission acknowledges and incorporates into its own policies, the policies of the Legislature as they relate to spheres of influence. The Commission wishes to specifically note the following declarations and policies contained in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000:

1) "Sphere of influence" means a plan for the probable physical boundaries

and service area of a local agency, as determined by the commission. (G.C. §56076)

2) In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly development and coordination of local governmental agencies so as to advantageously provide for the present and future needs of the county and its communities, the commission shall develop and determine the sphere of influence of each local governmental agency within the county and enact policies designed to promote the logical and orderly development of areas within the sphere. (G.C. §56425(a)).

B) GENERAL GUIDELINES FOR THE REVIEW OF SPHERES OF INFLUENCE

It is the intent of the Commission to consider the following criteria whenever reviewing a proposal that includes the adoption, amendment, or update of a sphere of influence.

1) Land Use

a) The present and planned land uses in the area, including

designated agricultural and open-space lands. b) Consistency with the Napa County General Plan and the

general plan of any affected city. c) Adopted general plan policies of the County and of any

affected city that guide future development away from designated agricultural or open-space land.

d) Adopted policies of affected agencies that promote infill of existing vacant or underdeveloped land.


e) Amount of existing vacant or underdeveloped land located within any affected agency’s jurisdiction and current sphere of influence.

2) Municipal Services

a) The present capacity of public facilities and adequacy of public

services provided by affected agencies within the current jurisdiction and the adopted plans of these agencies to improve any municipal service deficiency, including adopted capital improvement plans.

b) The present and probable need for public facilities and services within the area proposed for inclusion within the sphere of influence and the plans for the delivery of services to the area.

C) CITY SPHERES OF INFLUENCE

The Commission shall adhere to the following policies in the establishment, review, amendment, or update of city spheres of influence.

1) General Policies Concerning City Spheres

a) Location of Urban Development. The basic policy of the

Commission in the establishment of a city sphere of influence boundary line shall be that urban development within a city's sphere of influence shall be developed under the jurisdiction of the city. If urban development is legally required by the County, such development should conform to the applicable city standards and be the subject of a joint city-County planning effort.

b) Use of County General Plan Agricultural and Open-Space Designations. When establishing a city sphere of influence boundary line, the Commission shall use the most recently adopted Napa County General Plan as the basis to identify designated agricultural and open-space lands.

c) Avoidance of Inclusion of Agricultural and Open-Space Lands. Land specifically designated as agricultural or open-space lands shall not be approved for inclusion within any city sphere of influence for purposes of urban development. An agricultural or open-space designation shall be recognized by the Commission as designating the land as non-urban in character in regard to the existing use of the area or its future development potential. Exceptions to this policy may be considered by the Commission based on information submitted to the Commission provided by


the affected city that responds to criteria contained in Section B. - Sphere of Influence Amendment Guidelines.

d) Preference for Infill. When reviewing proposals for the expansion of a city sphere of influence, the Commission will consider the amount of vacant land within the existing jurisdiction and sphere of influence of the affected city. To discourage urban sprawl and encourage the orderly formation and development of cities in Napa County, the Commission will encourage proposals that promote the infill of existing vacant or underdeveloped land thereby maximizing the efficient use of existing city services and infrastructure. The Commission will discourage proposals for development of vacant or open-space land that requires the extension of urban facilities, utilities, and services where infill is more appropriate.

e) Adopted Spheres of Influence as Guide for City Annexations. When municipal spheres of influence have been adopted by the Commission, they shall be used as a guide in the consideration of city annexation proposals. Adoption of such spheres shall not be construed to indicate carte blanche approval of any annexation proposal merely because the land is included within the sphere of influence.

2) Policies Concerning Cooperative Planning and Development Programs

a) Role Of Adopted Sphere Of Influence In Agency Planning.

The urban area as delineated by the established sphere of influence line, having been developed by the Commission in cooperation with the affected city and County, should be recognized and considered as part of planning and development programs of the affected city, any affected special district, and the County.

b) Preference For Infill Within The City’s Jurisdiction Or Within The City’s Adopted Sphere Of Influence. To maximize the efficient use of existing city services and infrastructure and discourage the premature conversion of agricultural and open-space lands to urban uses, the Commission shall encourage the city to develop first those existing vacant and under-developed lands located within the city's jurisdiction or within the city’s adopted sphere of influence. The Commission shall encourage the development of vacant or under-developed land located within the city’s jurisdiction before the annexation of land that requires the extension of urban facilities, utilities, and services.

c) Interagency Cooperation. Urban development and utility expansion programs should be planned and programmed by the city on a staged basis in cooperation with the County and the Commission.


d) Restrictions On Urban Development Approvals By County Within City Sphere Of Influence. No urban development should be permitted by the County to occur on unincorporated land within a city's designated Sphere of Influence. If approval of urban development in such areas is legally required of the County, such development should conform to applicable city standards and be the subject of a joint city-County planning effort.

e) Exclusion Of Unservable Areas. Areas that cannot be provided with an urban level of essential public services, such as public water, sewer, fire protection and emergency response, shall be considered for sphere inclusion and eventual annexation and development, only on an exceptional basis. Economic and planning justification for such annexations shall be provided to the Commission by the city.

D) SPECIAL DISTRICT SPHERES OF INFLUENCE

The Commission shall adhere to the following policies in the establishment, review, amendment, or update of special district spheres of influence.

1) General Policies Concerning Special District Spheres

a) Single Boundary. Only one sphere of influence boundary line

will be drawn for each district. b) Boundary to Reflect Service Capacity. The location and

character of the boundary line should be responsive to existing and planned service facilities. Planned facilities are those to be constructed within a ten (10) year period.

c) Urbanizing Effect of Services. It shall be a basic policy of the Commission when considering establishment of a special district sphere of influence that extension of urban services acts to promote urban development and that urban development belongs in urban areas.

d) Exclusion of Agricultural and Open-Space Lands. Land designated agricultural or open-space by the applicable city or County general plan shall not be approved for inclusion within any district sphere of influence for purposes of urban development through the extension of essential public services. Such designations shall be recognized by the Commission as designating the land as non-urban in character in regard to the existing use of the area or its future development potential. The Commission may consider exceptions to this policy based on evidence provided by the affected district which demonstrates all of the following:


i) The expansion is necessary in order to provide public

water or sewer to an existing parcel to respond to a documented public health hazard.

ii) The affected district can provide adequate public water or sewer service to the affected territory without extending any water or sewer mainline more than 1,000 feet.

iii) The expansion will not harm land in agricultural or open-space use.

iv) The expansion will not promote conversion of agricultural or open-space land to urban use.

e) Adopted Sphere of Influence as Guide to Annexations. The

Commission shall use an adopted special district sphere of influence as a guide when considering subsequent annexations to the affected special district, but mere inclusion of land within an adopted sphere of influence shall not be construed as carte blanche approval of any annexation proposal for that land.

f) Joint Applications. When an annexation is proposed outside an affected district's adopted Sphere of Influence, the Commission may consider both the proposed annexation and the necessary change in the sphere of influence at the same meeting, but amendment to the sphere of influence boundary to include the affected territory shall be considered and resolved prior to Commission action on the proposed annexation.

2) Policies Concerning Cooperative Planning and Development Programs

a) Role Of Adopted Sphere Of Influence In Agency Planning.

The service area of a special district as delineated by the adopted sphere of influence boundary, having been developed by the Commission in cooperation with all affected agencies, should be recognized and considered as part of the planning and development programs of any affected district, city and the County.

b) Service Expansion Programs. A district should plan and program its service expansion programs on a staged basis in cooperation with the County, any affected city, and the Commission.


III) POLICIES CONCERNING THE COUNTY OF NAPA A) LOCATION OF URBAN DEVELOPMENT

1) Land use developments of an urban character and nature should be located within areas designated as urban areas by the Napa County General Plan in close proximity to a city or special district which can provide essential public services.

2) Urban development should be discouraged if it is apparent that essential

services necessary for the proposed development cannot readily be provided by a city or special district.

B) USE OF COUNTY SERVICE AREAS

1) In those unincorporated urban areas where essential urban services are being provided by the County, the Board of Supervisors should consider the establishment of county service areas so that area residents and property owners pay their fair and equitable share for the services received.

2) The Commission recognizes that the formation of county services areas are

subject to both the Cortese-Knox-Hertzberg Local Government Reorganization Act and County Service Area Law (G.C. §25210.1 et. seq.).


IV) POLICIES CONCERNING SPECIAL DISTRICTS A) IN LIEU OF NEW DISTRICT CREATION

Where a limited-purpose special district exists and additional services are required for an unincorporated area designated as urban by the Napa County General Plan, the Commission encourages, in lieu of creating a new special taxing district, either the use of county service areas to provide the extended services or reorganization of the existing limited services special district as a special district capable of providing multiple urban services.

B) PREFERENCE FOR DISTRICTS CAPABLE OF PROVIDING ALL

ESSENTIAL SERVICES

All new special districts proposed for formation in the unincorporated urban areas as designated under the Napa County General Plan should be capable of providing essential urban type services which include but are not limited to water, sanitation, fire protection, and police protection.


V) POLICIES CONCERNING ANNEXATIONS A) GENERAL POLICIES CONCERNING ANNEXATIONS TO A CITY

1) Inclusion in Sphere of Influence. The affected territory shall be included within the affected city sphere of influence prior to issuance of the Executive Officer's certificate of filing for the subject annexation proposal. For annexation proposals initiated by resolution of the city council, the Executive Officer may agendize both the sphere of influence amendment and annexation application for Commission consideration and action at the same meeting.

2) Substantially surrounded. For the purpose of applying the provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act, most notably Government Code §56375, the subject territory of an annexation proposal shall be deemed “substantially surrounded” if it is within the sphere of influence of the affected city and two-thirds (66-2/3%) of its boundary, as set forth in a boundary description accepted by the Executive Officer, is surrounded by the affected city.

B) POLICIES CONCERNING ISLAND ANNEXATIONS

1) Boundary of Areas Not 100% Surrounded by City. The outside boundary of an unincorporated island less than 100% surrounded shall be the affected city sphere of influence boundary line.

2) Criteria for Determining a Developed Island. A developed island shall substantially meet all the following criteria:

a) The island shall have a housing density of at least .5 units per

gross acre. b) All parcels within the island can readily receive from the

affected city or any affected special district basic essential services including but not limited to police protection, fire protection, public water and sanitation.

3) Policy Regarding Annexations Within an Identified Island Area. When an

annexation proposal includes territory within a developed island, the Commission shall invite the affected city to amend the boundary of the proposed annexation to include the entire island. To the extent permitted by law, the Commission reserves the right to expand the boundaries of the proposed annexation to include the entire island.


C) POLICIES CONCERNING ANNEXATION OF MUNICIPALLY-OWNED LAND

1) Restricted Use Lands Owned by Public Agencies. The Commission shall

disapprove annexation of publicly-owned land designated agricultural or open-space or subject to a Williamson Act contract unless the land will be used for a municipal purpose and no suitable alternative site reasonably exists within the affected city’s sphere of influence.

2) Facilities Exempt from Policy. Municipal purpose shall mean a public

service facility which is urban in nature such as water and sewage treatment facilities and public buildings, but shall not include land which is vacant or used for wastewater reclamation irrigation, a reservoir, or agricultural, watershed or open-space.

D) CONCURRENT ANNEXATION POLICIES

It is the intent of the Commission to promote concurrent annexations to cities and special districts whenever appropriate. The Commission may waive its concurrent annexation policies based on unique conditions or circumstances surrounding the annexation proposal which make application of the policy impractical and will not result in the annexation of lands designated agricultural or open-space by the applicable city or County General Plan.

1) City of Napa and Napa Sanitation District

a) Annexations to the District. All annexation proposals to the

Napa Sanitation District located outside of the City of Napa shall first be required to annex to the City if the affected territory is located within the City's sphere of influence as adopted by the Commission, is located within the City Residential Urban Limit Line (RUL) as adopted by the City, and annexation is legally possible.

b) Annexations to the City. All 100% consent annexation proposals to the City of Napa located outside of the Napa Sanitation District shall be required to annex to the Napa Sanitation District if the affected territory is located within the District's sphere of influence and if sanitation service is available.

2) City of American Canyon and American Canyon Fire Protection District

a) Annexations to the District. All annexation proposals to the

American Canyon Fire Protection District located outside of the City of American Canyon shall be required to annex to the City if the affected territory is located within the City's sphere


of influence as adopted by the Commission and if annexation is legally possible.

b) Annexations to the City. All annexation proposals to the City of American Canyon located outside of the American Canyon Fire Protection District shall be required to annex to the District if the affected territory is located within the District's sphere of influence.


ksimonds

Text Box

ATTACHMENT THREE

1700 Second Street, Suite 268Napa, California 94559

Telephone: (707) 259-8645Facsimile: (707) 251-1053http://napa.lafco.ca.gov

Juliana Inman, Chair Councilmember, City of Napa

Bill Dodd, Vice Chair County of Napa Supervisor, 4th District

Brian J. Kelly, Commissioner Representative of the General Public

Local Agency Formation Commission LAFCO of Napa County L

oca

l Age

ncy Formation Comm

ission

Napa County

ATTACHMENT FIVE MEMMORANDUM March 16, 2010 TO: Local Agency Formation Commission FROM: Keene Simonds, Executive Officer SUBJECT: Environmental Review for Recommended Sphere of Influence Update

for American Canyon ________________________________________________________________________

A sphere update is a project under the California Environmental Quality Act (CEQA) if it is determined the underlying action may cause a direct or indirect physical environmental change. All projects under CEQA require additional review unless otherwise exempt. The recommended sphere update for American Canyon extensively expands beyond the City’s current jurisdiction. All lands to be added to the sphere through the update are planned for urban uses. The expansion of the sphere, therefore, may reasonably result in indirect physical changes to the environment through future annexations facilitating new urban development. For these reasons, the recommended sphere update is a project under CEQA. If a project can be seen with certainty to have no possibility of having a significant effect on the environment, it is not subject to further review (Code of Regulations Section 15061(b)(3)). This type of exemption is commonly referred to as the “common sense” rule. In addressing whether the recommended sphere update may have a significant impact, LAFCO should consider the extent to which future land uses might be changed. Review of the consistency and compatibility of the land use designations and zoning standards by the County and American Canyon is appropriate in determining the effect on land uses. The common sense exemption applies to the recommended sphere update. With respect to Study Area A, the County and American Canyon’s land use designations are nearly interchangeable while their zoning standards for the affected lands are identical. This existing compatibility ensures future development in Study Area A would be the same under either jurisdiction. Similarly, based on its immunity from local zoning regulations, the Napa Valley Unified School District has already approved the development of a middle school in Study Area D. The pending development of the middle school will be the same under either jurisdiction. It is also reasonably certain to presume the development of Study Area F would be the same under either jurisdiction. This presumption recognizes the County has already designated and zoned the affected lands for industrial uses; uses American Canyon previously committed to in their General Plan and currently apply to surrounding lands. Based on the preceding review, staff will file an exemption notice with the County Clerk-Recorder’s Office if the Commission approves the recommended sphere update.

Lewis Chilton, Commissioner Councilmember, Town of Yountville

Joan Bennett, Alternate Commissioner Councilmember, City of American Canyon

Brad Wagenknecht, Commissioner County of Napa Supervisor, 1st District

Mark Luce, Alternate Commissioner County of Napa Supervisor, 2nd District

Gregory Rodeno, Alternate Commissioner Representative of the General Public

Keene Simonds Executive Officer

Documents

LOCAL AGENCY FORMATION COMMISSION OF NAPA ......projected operating fund balance at the end of the 2008-2009 fiscal year is $4.3 million. American Canyon operates two municipal enterprises